Would You Advise People To Stake?

[Questat]

I honestly don't recommend this kind of making money from crypto because I had joined once a bounty where they offered staking and when lots of people bought their coins, they run away and sold a massive amount of coins also their social media are not active anymore, so it was clearly a pump and dump coin. There are lots of such coins offering staking and most of them offer high returns of percentage but you cannot distinguish the legit from scam because both are pretty active in their social media updates at first.

Yes, we could assume that those who decide to stake are aware of the situation they are taking.
It was tempting to see some exchange offers huge taking percentages and it really encourage investors to put their money at risk. Unfortunately, greedy people will closely fall into temptation and soon regret it. But that was good for them at least their experience will help them realize that staking is not good for all coins because many are false offers and a kind of scam trick.

[iv4n]

I stake some coins in some places... why not? Crypto is full of good stuff and I think people should try it. Please don't go for some crazy high APY, it's usually some scam... but staking in some exchanges and wallets with some reasonable APY, and in my case in casinos too, is bringing some passive income and it's pretty safe, at least I didn't encounter any issues over the years. 

 

[AakZaki]

I stake some coins in some places... why not? Crypto is full of good stuff and I think people should try it. Please don't go for some crazy high APY, it's usually some scam... but staking in some exchanges and wallets with some reasonable APY, and in my case in casinos too, is bringing some passive income and it's pretty safe, at least I didn't encounter any issues over the years. 

 

Non-significant high APY would indeed be an early indication of a scammer, but if you stake your crypto assets on a centralized exchange with reasonable APY it is indeed safer. But you also need to see how the exchange performs in payments and other transactions. If it gets recommended a lot like Binance, it's a good place. and if you haven't had any problems for years it's definitely a recommendation.

[wiss19]

If the user has a lot of ETH, why not. Institutions are also staking, he just has to figure out how many ETH he has so that he can already figure out how much he'd be earning for the whole year.

The Platform however is not very attractive with ETH staking. It's best that the user can sell when the bull run is closer to an end. This I guess is supposed to be learned. It's more reasonable to sell in the bull run in my opinion.   

ETH isn't the only crypto that can't be staked but you are right that it requires a lot of ETH ( maybe over 10 ) for the user to start staking. Maybe institutions themselves are also doing it but they are mostly known as investors. It's important to calculate the rewards and the risk so that we will know if it's worth it or not.

We can still unstake our coins and then sell on the best times. It should give us a better profit than if we will do one activity only. There are indications if when will the bull run can possibly come. We only need to take note of those dates and stake in advance so that we can unstake easily and prepare for it once they are getting close.

[uneng]

Right now I don't think it's a good idea to advise others to stake, because there are several risks involved on this kind of investment:

The platform might disappear suddenly, scamming everyone;
The coin or token you are staking can lose price considerably;
Yield paid can be decreased any time by the platform.

If you advise someone staking, they will go after you once they face one of the issues mentioned above and they will want to play you guilty for their personal losses on the staking programs they joined. What I can tell you is to advise people to make their own research before staking and looking for the pros and cons of such investments.

[kingvirtus09]

I'm a beginner so I put it in the Beginners & Help section.

Coinbase offers "Cosmos" with a yearly annual return of 17.66%.
I did some research on Cosmos and its future looks bright.
On my research, it says to only Stake on huge platforms, such as Coinbase.
I realize the drawback is you freeze your funds for a certain amount of time.
The other drawback is because of Crypto's ups and downs, you might lose money if it goes down. But that's true of any crypto, including BTC.

As far as I can tell, the annual return stays at 17.66% for the duration.
Is there any drawback I'm missing?
Why don't people just buy Cryptos that they can stake?

if I have a platform to use to make stakes or Farming it is only Binance and Biswap, because I tried to stake Bitcoin using Binance for 90 days and based on my experienced it was good and I never encounter any such problems.
And in dex, biswap was one I trusted this platform never fails me it always satisfies me every time I made a staking here. it may not be good to others but for me it was good in my experience as well.

[QueenVera]

I stake some coins in some places... why not? Crypto is full of good stuff and I think people should try it. Please don't go for some crazy high APY, it's usually some scam... but staking in some exchanges and wallets with some reasonable APY, and in my case in casinos too, is bringing some passive income and it's pretty safe, at least I didn't encounter any issues over the years.  

I won't say it's safe but it's worth the risks because you're getting some passive income instead of your coins just sitting in your wallets doing nothing. Its isn't safe because those platforms that allow staking are mostly centralized platforms and they're big target to hackers that knows alots of coins are on these platforms and if they get hacked you might loss all your coins.
Not every platforms will have the resources to pay their customers from their reserved and some platforms don't have emergency funds because most platform that looks successful to us aren't as successful as they look. They might not have the resource to cover for all the coins that were stolen just as we have seen with the defi projects getting hacked and just closed down.
We're taking risk leaving our coins on centralized platforms. The passive income feels good but please know what you're doing so you don't blame the industry when it isn't its fault but the fault of the platforms you want to trust. Don't invest all you money into staking on centralized platforms because there could be so many thing that could go wrong and hacking is just one of them.

[stafstor]

My opinion is "No". You shouldnt stake. Landing might be a nice investment, but I mean stablecoins or some well known currencies like BTC, ETH, XRP or TRX. Well, landing USDT for 2-3% won't give you a big profit. But you get USDT, which is almost equal to $. There is no reason to get 1234550000% yearly from some token if its token price will fall to 0 .

[TheUltraElite]

The APY in some staking processes is way high to be true. Most of these turn out to be scams in a year or two. If people were getting rich just from staking we would have seen a decrease in poverty because everyone would have been trying it and it would be suggested by everyone on this forum too.

The truth is that many people have lost money through staking and most are not willing to reveal their mistakes on this forum because of guilty feeling and shame, although I never got my hands dirty with it. Hence I dont advice people to stake, or go for shitcoins and memecoins. Keep yourself limited to bitcoin and trading at the most.

[Oneandpure]

In staking coins system has the rule with high risk get high return later, staking with unpopular coins seems interested actually first time launching to public they will give excited staking reward above 100%, but can't guarantee with stable price for few weeks later and its high risk when staking with new coins publishing. Many people loss their money after staking with new coins launching probably want to give more than 200 APY reward staking but after unlocking time arrive price drop drastically.

Its not moment for staking coins and have APY above 20% each years, many kinds of staking coins under 8% but still get risk with price not stable yet actually we need waiting until one year later. Be careful when finding new coins launching and brave with staking reward above 200% until 500% because not guarantee with price stable for long term.

[Xal0lex]

I stake some coins in some places... why not? Crypto is full of good stuff and I think people should try it. Please don't go for some crazy high APY, it's usually some scam... but staking in some exchanges and wallets with some reasonable APY, and in my case in casinos too, is bringing some passive income and it's pretty safe, at least I didn't encounter any issues over the years. 

Staking on centralized exchanges is dangerous because centralized exchanges have much more opportunities to take your coins away from you than if you were staking on decentralized exchanges. Decentralized exchanges have their own risks because smart contracts are often hacked, but they have fairer rates than centralized exchanges, whose pools very often lower interest rates as you hold your funds in those pools.

[coinerer]

When a coin is staked on its own platform, the return is very low, but when staked on a third party platform, the interest is high, but it is high risk. because of this I don't advise anyone to stake because investing in cryptocurrency is already very risky but when it is staked the control of that currency is completely transferred to someone else. which is high risk and thus many people lose a lot of money. And this is why staking may not be a smart idea.  I always advise everyone to wait to buy a coin until they can profit from it.  And whenever he is in profit it should be sold immediately

[cute nmp]

Sure ,I would advise people to stake different Crypto-pairs including stable currencies especially during the bull market,staking is very profitable and one can easy make some money doing it.The only negative side is staking during the bear market which can easily results into a loss.

[marlo1001]

As for me, staking of alts is pretty risky thing. You can stake it for 17% apy in token but it may go down 25% for that year to btc/usd. And you will loose time and money at the end

[iv4n]

I stake some coins in some places... why not? Crypto is full of good stuff and I think people should try it. Please don't go for some crazy high APY, it's usually some scam... but staking in some exchanges and wallets with some reasonable APY, and in my case in casinos too, is bringing some passive income and it's pretty safe, at least I didn't encounter any issues over the years. 

Staking on centralized exchanges is dangerous because centralized exchanges have much more opportunities to take your coins away from you than if you were staking on decentralized exchanges. Decentralized exchanges have their own risks because smart contracts are often hacked, but they have fairer rates than centralized exchanges, whose pools very often lower interest rates as you hold your funds in those pools.

I get your point, but can we say the same for saving in banks? Banks can decide to freeze any account as centralized exchanges can do... After mandatory KYC at Binance, I decided to not go through that and just move my funds. At the moment I have some BSW on staking at BiSwap, and in the past months (maybe more) I noticed that interest rates are lowered, as you explained, more than halved to be accurate. 

[Hildentine]

According to my experience is that anyone who wants to stake there fund so first they choose a strong and potential project and check there next move some time people stake there fund and they will loss because a price dump hardly..

[stafstor]

According to my experience is that anyone who wants to stake there fund so first they choose a strong and potential project and check there next move some time people stake there fund and they will loss because a price dump hardly..

Exactly, especially if you choose something with potential profit over 100% per year. It's probably either a scam or some sort of one-day token with so high volatility that you can lose everything.

[shinratensei_]

As for me, staking of alts is pretty risky thing. You can stake it for 17% apy in token but it may go down 25% for that year to btc/usd. And you will loose time and money at the end

thats the main reason they have such high APY because they want to attract attention to their coin because if its just ordinary APY rates its not gonna attract the attention of many.
the thing is, the volatility very frequently outweigh the rewards gained from staking as you stated that sometimes we should make analysis first before even staking these coins in general.
moreover the fact that sometimes the rewards given were coming from the vested coin only means that its almost guaranteed for the value of these coins in general gonna tank almost immediately after
the staking period ended and coin unlocked for rewards, which means massive waste of time which resulted in almost nothing beneficial.

[Huppercase]

I'm a beginner so I put it in the Beginners & Help section.

Coinbase offers "Cosmos" with a yearly annual return of 17.66%.
I did some research on Cosmos and its future looks bright.
On my research, it says to only Stake on huge platforms, such as Coinbase.
I realize the drawback is you freeze your funds for a certain amount of time.
The other drawback is because of Crypto's ups and downs, you might lose money if it goes down. But that's true of any crypto, including BTC.

As far as I can tell, the annual return stays at 17.66% for the duration.
Is there any drawback I'm missing?
Why don't people just buy Cryptos that they can stake?

The best time to stake should always be during crypto winter, it's always easy to buy coins at cheap price and stake them, you will enjoy the APY and the profit when there is pump in the market or when the bull run comes around. Staking coins or token should be discourage during bullrun because in this period, the crypto market can be extra voltile in which buying at the top might give loss and staking it again will add to it because staking contracts wouldn't allow you to unstake until the period of staking is finished and you will continue to have loss is possible and the APY profits wouln't be enough to compesate your loss.

For me, I don't like staking due to the security concerns in smart contracts and hack that always happen in the backend, many people have lost thousands of dollars because of this features in altcoins and don't have money to invest again, if the token stake are not teams or venture capitals that are always the ealry bird to avoid token price crash, I don't like staking a bit because the common investors don't gain anything from it, they are always the losers.

[Xal0lex]

I stake some coins in some places... why not? Crypto is full of good stuff and I think people should try it. Please don't go for some crazy high APY, it's usually some scam... but staking in some exchanges and wallets with some reasonable APY, and in my case in casinos too, is bringing some passive income and it's pretty safe, at least I didn't encounter any issues over the years. 

Staking on centralized exchanges is dangerous because centralized exchanges have much more opportunities to take your coins away from you than if you were staking on decentralized exchanges. Decentralized exchanges have their own risks because smart contracts are often hacked, but they have fairer rates than centralized exchanges, whose pools very often lower interest rates as you hold your funds in those pools.

I get your point, but can we say the same for saving in banks? Banks can decide to freeze any account as centralized exchanges can do... After mandatory KYC at Binance, I decided to not go through that and just move my funds. At the moment I have some BSW on staking at BiSwap, and in the past months (maybe more) I noticed that interest rates are lowered, as you explained, more than halved to be accurate. 

My personal observation is that centralized exchanges, while providing us with staking opportunities, very often change their initial terms and conditions. Exchanges can attract liquidity to their platforms in a similar way by luring customers with promises of high interest rate payouts. Then it turns out that the rate is floating and changes downward over time. Centralized exchanges dispose of your cryptocurrencies as if they already own them. Unreliable platforms.